Gary DeWaal, Financial Markets and Regulation chair, spoke with Law360 on the latest guidance from the Commodity Futures Trading Commission's (CFTC) Division of Enforcement (DOE) that provides a "risk-based" framework for staff to review corporate compliance programs. The guidance is part of an ongoing effort by the CFTC to promote the transparency of its examination and enforcement strategies. Noting that the guidance is not groundbreaking, Gary stated that it does provide "a useful checklist" for firms to use to gauge the adequacy of their compliance programs against DOE expectations. He recommended that compliance programs be "re-evaluated and amended, as necessary, when problems occur to ensure if something slipped through the system once, it likely won't happen a second time." While the CFTC noted that in assessing the effectiveness of compliance programs it will consider the disciplining of wrongdoers, the regulator did not clarify how it will determine what "appropriate discipline" is. Gary suggested that where there is an identified wrongdoer, "there should be some consequences." ("CFTC Plugs 'Transparency' Of Corporate Compliance Memo," September 10, 2020)
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